What conditions should I include when making an offer on a house?

Conditions in an offer protect you by giving you an exit if certain things do not go as expected. The two most common conditions in Ontario residential offers are a financing condition and a home inspection condition.

A financing condition gives you a set number of days — typically five to seven business days — to secure a mortgage commitment from your lender. If your financing falls through, you can walk away and recover your deposit. A home inspection condition allows you to have the property inspected by a qualified inspector; if the report reveals serious defects, you can either renegotiate or terminate the deal.

Other conditions you might consider include a condition on the satisfactory review of condominium status certificate (mandatory for condo purchases), a condition on the sale of your existing property, or a lawyer review condition. In competitive markets, buyers sometimes waive conditions to make offers more attractive — this carries real risk. Talk to your lawyer about what protections you should keep before you waive anything.